China has banned financial institutions and payment companies from offering cryptocurrency-related services such as transactions and warned investors to increase speculative trade in the sector. The Chinese bank’s statement is the second hit on bitcoin and the crypto market in a week, after electric car maker Tesla and its creator Elon Musk announced a few days ago that they were refusing to accept bitcoin because of its high energy value and climate footprint.
This led to a decline of more than 10 thousand dollars or 15% to 37.6 thousand dollars, which subsequently accelerated to a 20% loss in 24 hours and a price of 33.4 thousand dollars. Thus, the currency has lost everything gained since the beginning of February, and since the top the loss for bitcoin is over 40%. There is a serious decline in other large cryptocurrencies, such as Ethereum (-33%), Binance Coin (-33%). With a 30% loss is the highly launched by Elon Musk Dogecoin – over 32% drop per day.
On Wednesday, the Central Bank of China, the local banking association and representatives of the Internet industry issued a general opinion that financial and payment institutions should not accept cryptocurrencies for payment. “They are not a real asset,” it said. This is another attempt by Chinese regulators to limit the activity of virtual money to prepare the stage for their own cryptocurrency, the digital yuan.
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